A number of visitors to Canadian Tax Resource write me with their questions. I haven’t published reader questions and answers in quite some time and over the Christmas break, I will post a number of recent questions posed by visitors.
If you have a question, please feel free to ask. While, I cannot provide official tax advice, I can certainly let you know my thoughts and hopefully point you in the right direction.
Reader Question – Can I Make A RRSP Contribution After Age 71?
My husband turned 71 this year (2009). He has done his RRSP for 2009 and all investments are now RIF’d. Have been advised by banker that he could take an additional RRSP now and carry forward to his 2010 tax year. Apparently a penalty of 1% would be charged by Revenue Canada. Is this correct and is this a good idea. Thanks.
You can contribute to a RRSP until the end of the year you turn age 71. If you will have earned income after age 71, you can make an RRSP contribution that is more than $2,000 above the contribution limit then the penalty tax applies for 1 month (December). In Januarythe overcontribution will be offset by your new RRSP contribution room.
Related Articles
- RRSP Over Contribution & Decline In Market Value
- Do I Have To Deduct My RRSP Contribution This Year or Can I Deduct It In The Future?
- Using An Inheritance To Make An RRSP Contribution
- Annual RRSP Contribution Limits
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